Alcoa reports third quarter 2015 profit

Lightweight metals Alcoa reported a third quarter profit as its value-add and upstream portfolios delivered solid results in the face of strong market and currency headwinds. Alcoa has been transforming by building its value-add portfolio for profitable growth and creating a globally competitive upstream business. The Company’s successful multi-year transformation will culminate with the launch of two Fortune 500 companies, one value-add focused and the other upstream focused, expected in the second half of 2016. Alcoa reported third quarter 2015 net income of US$44m including US$65m in net unfavorable special items. Special items included restructuring-related costs to optimize the upstream portfolio and transaction costs, partially offset by gains on asset sales. Third quarter 2015 results compare to net income of US$149m in third quarter 2014. Excluding special items, third quarter 2015 net income was US$109m led by strong productivity gains and solid midstream and downstream profitability, offset by lower metal prices. The Midwest transaction price was down US$641 per metric ton, or 27.2% year-to-date through September 30, 2015. Third quarter 2015 results, excluding special items, compare to net income of US$370m third quarter 2014. Third quarter 2015 revenue totaled US$5.6bn, down approximately 11% year-over-year. Divesting and closing lower-margin businesses and market headwinds caused third quarter revenue to fall 21%. This decrease was partially offset by a 10% third quarter revenue increase from organic growth in aerospace, automotive and alumina, combined with acquisitions.